Geologix Provides Results of 2017 Exploration Program and Identifies New Potential at Tepal

VANCOUVER, British Columbia, March 15, 2018 (GLOBE NEWSWIRE) -- Geologix Explorations Inc. (TSX:GIX) (“Geologix” or the “Company”) is pleased to present a summary of results from its 2017 exploration program and provide a 2018 outlook for its 100% owned Tepal Gold/Copper Project (“Tepal”) located in Michoacán state, Mexico. Geologix’s management team and board of directors are committed to increasing shareholder value via focused exploration that the Company believes will improve Tepal’s existing resource base and lead to additional discoveries, with the goal of enhancing the Preliminary Economic Assessment (“PEA”) (see press release dated January 19, 2017) prior to advancing the project to the pre-feasibility and/or feasibility stage.

2017 Exploration Program Highlights:

• Company geologists developed a new structurally controlled exploration model for Tepal that is a departure from the long-held porphyry exploration model, with potentially game-changing implications for both property-scale and regional exploration.
• The 2017 work program successfully tested the updated model via surface mapping and sampling, alteration and structural surveys, core re-logging and 3D geophysical modeling, and was therefore extended into the 2018 calendar year to generate new exploration targets.
• The updated model identified under-drilled areas within and surrounding the three proposed PEA pits where there is excellent potential to improve the existing gold-copper resource through additional infill and step-out drilling in 2018.
• Importantly, the 2017 exploration program directly resulted in the discovery of a previously unknown and untested high sulphidation epithermal system underlying the Tepal property, which is now fast-tracked for drilling later this year.

“2017 was a pivotal year for Geologix,” said Kiran Patankar, President and CEO. “The January 2017 PEA confirmed Tepal’s robust economics, which have since improved with positive movements in gold and copper prices. Recognizing significant and as-yet untested exploration potential, the Company hired a new VP of Exploration with a successful track record of discovery in Southern Mexico and reinitiated field work in the second half of the year. The results of the 2017 exploration program will change how and where we explore, optimize future drilling, and increase the potential for new discoveries within our current property boundary and more regionally. The Company’s 2018 objective is to utilize our deep technical expertise to drive organic growth through a focused exploration drilling program, initially targeting higher-grade material that can enhance the current PEA life-of-mine plan as well as testing the project’s district-scale potential. On behalf of Geologix’s management team and board of directors, I would like to take this opportunity to thank all stakeholders for their continued support and I remain confident that their patience will be rewarded in the coming year.”

Gillian Kearvell, VP Exploration, added: “While it is not uncommon in today’s market driven environment to seek short cuts to reduce the timeline to discovery, positive exploration results are nevertheless dependent on time, hard work and persistence to succeed. This important new interpretation at Tepal is a direct result of the focused effort and dedication shown by the field exploration team with the support of key stakeholders. We are delighted by the success of the 2017 field program and are very much looking forward to an exciting exploration year ahead.”

2017 Exploration Program Details:

The objectives of the 2017 exploration program were to evaluate new higher-grade and/or bulk tonnage exploration targets with the potential to improve the existing mineral resource as well as assess the potential for new discoveries. Table 1 summarizes the Company’s surface exploration activities from June 2017 to date.

Table 1 – Surface Exploration Program Through February 2018:

The 2017 exploration program initially identified two distinct mineralizing phases or events and previously untested mineralized structural trends. Mineralizing phases are further described as follows:

• A gold-copper intrusion related system with low-grade bulk tonnage potential that is the subject of the existing resource; and
• A separate gold-silver event related to a higher-grade and structurally controlled mineralization.

This suggests that in addition to the known low-grade potential on the property, there is also significant and untested higher-grade exploration potential that appears to be structurally controlled. Both the low-grade and higher-grade mineral potential merit follow-up exploration and drilling.

Previous exploration at Tepal has focused exclusively on defining a porphyry-style deposit. The new interpretation replaces the porphyry model with one that is structurally controlled. Mapping and Niton XRF surveys from the 2017 program have supported the re-interpreted model by showing an absence of the usual porphyry indicators, such as alteration halos and patterns that typically include an outer chlorite/pyrite zone, classic silicification and/or potassium alteration in mineralized zones. Tepal’s mineralization patterns are consistent with a structurally controlled epithermal model that is the foundation for further drill testing and greatly enhances the exploration potential of the project. Importantly, this provides clear vectors for: 1) previously unexplored mineralized trends along structural controls; 2) bulk tonnage potential between structural corridors; and 3) highly prospective regional exploration potential in similarly untested settings.

The 2017 program was subsequently extended into the 2018 calendar year by implementing additional core re-logging and field checks to test the new exploration model. This program successfully identified multiple new targets for follow-up drilling this year (see Figure 1). Field checks have also resulted in a significant new discovery of a previously unknown and untested high sulphidation epithermal system underlying the Tepal property. This new exploration target was initially recognized in outcrops of vuggy silica alteration associated with a series of high-angle faults.

Figure 1 – New Drill Targets Identified in the 2017 Exploration Program:

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/7ee36ba1-f39b-46e0-8766-c7f4a33d999d

Selected samples were subsequently verified by a Portable Infrared Mineral Analyzer X-Ray Diffraction (PIMA XRD) analysis that confirmed the presence of important pathfinder minerals for a high sulphidation system, including illite, dickite, diaspore and pyrophyllite. Five new areas with high sulphidation exploration targets were located within the Tepal property boundary that, taken collectively, suggests a larger system is underlying the property (see Figure 1). To date, one of five chip samples collected from vuggy silica outcrop returned 2.28 g/t Au and 32.6 g/t Ag (sample 10610, located on Figure 1). The remaining four samples were not anomalous, which points to the early stage of exploration work. Due to their higher-grade and bulk tonnage potential, high sulphidation zones are priorities for follow-up exploration as surface mapping and sampling programs continue to advance these and other drill targets.

2018 Exploration Focus:

In addition to advancing the new discovery of a high sulphidation system, the 2017 program identified multiple priority targets for an anticipated 2018 drill program. Each of the following drill targets merit further testing for possible inclusion in an updated resource:

1. Areas with indications of potential high sulphidation epithermal mineralization, including three untested areas of favourable alteration located immediately W of the North Pit and South Pit zones, a fourth area located to the SE of the Tizate Pit, and a fifth area located to the N of the Tizate Pit where anomalous gold is known to occur in an area of combined high resistivity and chargeability (see Figure 1).
2. Parallel structural trends to known mineralization (see Figure 1).
3. A higher-grade breccia/feeder zone within the South Pit zone (see Figure 2).
4. Two under-drilled areas within and beneath the North Pit zone with potential to develop into additional higher-grade feeder zones (see Figure 3).
5. Structures associated with higher-grade stockwork quartz veining in the North Pit that have been mapped along trends outside of the current North Pit boundaries to the N and W-SW (see Figure 3).
6. Prospective structural dilations (or “jogs”) that have been mapped along trend to the SE of the South Pit where it intersects with a prospective NE structure, and to the SW of the Tizate Pit (see Figure 1).
7. An undrilled anomalous soil geochemistry target that exists NE of the Tizate Pit (see Figure 1).

Figure 2 – Oblique Section of South Pit Zone:

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/c5790bee-1eba-4b4e-9e16-8d217d5530c3

Figure 3 – Plan View and Oblique Section of North and South Pit Zone:

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/4a78c237-b48d-40b7-b36c-99c4e5aad885

Geologix has assembled a highly technical team of experienced geologists with a track record of discovery in Mexico to execute a planned 2018 exploration drilling program. The team’s objective is to realize the full value of Tepal through focused exploration activities that can enhance the existing mineral resource and build on its underexplored district-scale potential.

About Geologix Explorations Inc.

Geologix is a mineral exploration and development company focused on acquiring, exploring, and developing mineral resource opportunities with the potential to host profitable mining operations. The Company's primary focus is the Tepal Gold/Copper Project in Michoacán state, Mexico.

Dunham L. Craig, B.Sc., P.Geo, Chairman of the Board of Directors of Geologix, is the Qualified Person (as that term is used in National Instrument 43-101 Standards of Disclosure for Mineral Projects) who has approved and assumes responsibility for the technical disclosures in this press release.

For Further Information Please Contact:
Kiran Patankar
President and Chief Executive Officer
Tel: 604-694-1742
Email: kpatankar@geologix.ca
Website: www.geologix.ca

This Press Release may contain statements which constitute 'forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.

New Drill Targets Identified in the 2017 Exploration Program Oblique Section of South Pit Zone Plan View and Oblique Section of North and South Pit Zone